Outsourcing increases risk of data loss

7 October 2008
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08 October 2008 | Jake Kanter

Companies and public sector organisations that outsource services are more at risk of losing confidential data, according to an IT firm.

Speaking during national identity fraud prevention week, a campaign to help raise awareness, Paul Bates, managing director of StrongMail UK, said the issue of data loss is increasing as organisations rely far more on external suppliers to provide services.

"Businesses have a moral obligation to keep private, personal customer data safe and secure. They should not be handing it out to third parties in a bid to cut costs," he said.

A recent survey of 500 marketing companies by the firm found vendors are more likely to lose data. The firms said information such as addresses, phone numbers and credit card details are more at risk of going missing or being stolen when in the hands of a third party. In addition, some 61 per cent of those surveyed have experienced a "data breach" in the past two years.

Last month the Home Office terminated its contract with PA Consulting after the supplier lost "sensitive" data on prisoners in England and Wales (Web news, 11 September).



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